Best Guide to the London Congestion Charge Change and What It Means for EV Drivers

Shoppers, commuters and van drivers are weighing up a policy U‑turn as Transport for London confirms it will end the Cleaner Vehicle Discount for electric cars from January 2026. Drivers, fleet managers and residents need to know how the new tiered discounts work, why the AA calls the move “backwards” and how to plan for rising charges.

• What’s changing: The Cleaner Vehicle Discount ends from 2 January 2026, replaced by a tiered discount that reduces over time.
• Discounts kept: From January 2026 EV vans, HGVs and quadricycles get 50% off if on Auto Pay; electric cars get 25% off.
• Further reduction: From 4 March 2030 the discount falls to 25% for electric vans/HGVs/quadricycles and 12.5% for electric cars.
• Market impact: EV registrations in the congestion zone jumped from about 20,000 in 2019 to roughly 116,000 by early 2025, so TfL says incentives remain important but must balance revenue and congestion.
• Practical tip: Anyone who drives regularly through the Congestion Charge Zone should register for Auto Pay to access the new discounts and check fleet purchasing plans now.

Why this change matters and why drivers are talking about it

TfL says the new tiered system keeps incentives while making the Congestion Charge “effective”, but the change will feel immediate for people who bought EVs to avoid paying. The Cleaner Vehicle Discount, introduced in 2019, made going electric a clear financial win for many Londoners; removing it narrows that advantage and adds friction when every penny counts.

For fleets and self‑employed drivers the difference is tangible. A consistent, lower discount means running costs rise over time, and drivers who planned vehicle purchases around the CVD may now rethink timing. There’s a sharp sensory detail here: drivers who once enjoyed near‑silent, low‑cost journeys will soon notice the cost more than the hum of their motors.

What TfL says and the data behind the decision

TfL points to big numbers: EVs in the Congestion Charge Zone rose from about 20,000 in 2019 to over 116,000 in early 2025, and are forecast to approach 20% of vehicles in the zone by year‑end. The transport authority argues that a phased reduction balances continuing to encourage cleaner vehicles with the need to keep the charge a tool for managing traffic and funding transport services.

That said, the mayor’s office stresses “substantial incentives will remain”, and the new Auto Pay discounts do give some ongoing benefit. In practice, though, the scale of the reduction , especially the step down in 2030 , signals a shift in policy from generous subsidy to a gentler nudge.

Why the AA calls the move a “backwards step”

Edmund King, president of the AA, warned the change will harm air quality and could backfire because many drivers aren’t ready to switch to EVs yet. He argues incentives still matter to tip borderline buyers towards electric, particularly for essential van journeys and small businesses that face higher upfront vehicle costs.

Put simply, King sees the move as pulling away a carrot before the market has fully adjusted. For drivers, that could mean sticking with older, dirtier vehicles for longer, rather than upgrading , not ideal for urban air quality or for those trying to budget for a cleaner switch.

How to choose and plan if you drive in the Congestion Charge Zone

If you drive through central London regularly, register for Auto Pay now , it’s the only way to qualify for the new discounts. Revisit purchasing plans for company cars, vans and light goods vehicles; a small delay or a different choice of model could alter long‑term operating costs significantly.

Consider total cost of ownership, not just purchase price. Charging infrastructure, range you actually need, tax incentives and likely Congestion Charge bills should factor into decisions. If you can time a purchase before the CVD ends, that could save you money; if not, weigh a longer‑term payback period for a cleaner vehicle.

What this means for the wider EV transition and London’s air

This change highlights a policy balancing act: incentivise early adoption, but also keep congestion charging purposeful and fiscally sustainable. TfL’s approach signals a move away from heavy subsidies and toward modest, targeted support , but critics worry it slows the pace of swaps from petrol and diesel, especially among cost‑sensitive drivers.

Looking ahead, the stepwise reductions make it clearer that EV drivers will face gradually increasing parity with petrol drivers on congestion charges. That might push the market toward other solutions , pooled electric vans, micrologistics hubs, or greater use of low‑emission zones , rather than purely more EV purchases.

Ready to make a decision about your next vehicle or route? Check current prices, register for Auto Pay and review your fleet plans now so you’re not caught out when the Cleaner Vehicle Discount ends.